Assuming that the GDP breakdown shown in Table 2.1 is typical of a given year in the U.S. we can say that ________
A) we spend twice as much on goods consumption as we do on services
B) consumption of durable goods is twice that of nondurables
C) government purchases is the largest main component of GDP
D) all of the above
E) none of the above
E
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Consider the following data for a closed economy:
a. Y = $12 trillion b. C = $8 trillion c. I = $3 trillion d. TR = $2 trillion e. T = $3 trillion Use the data provided to calculate the level of private saving and the level of public saving and demonstrate their relationship to investment.
Screening is
a. actions by the informed party to reveal her true risks b. actions by the informed party to conceal her true risks c. actions by the uninformed party to uncover the true risks d. actions by the uninformed party to conceal the true risks
The nation's largest cable TV company tested the effect of a price reduction for premium movie channels. It lowered prices 10% and found that the number of customers rose by almost 50%. This means: a. the demand curve for the premium movie channels shifted to the right. b. the supply curve for premium movie channels shifted to the left
c. the demand for premium movie channels is elastic in this price range. d. the demand for premium movie channels is inelastic in this price range.
Economists define the term marginal utility (mu) as:
a) The additional satisfaction gained divided by the additional cost of the last unit. b) Total satisfaction gained when consuming a given number of units. c) The process of comparing marginal units of all goods, which could be purchased. d) The additional satisfaction obtained by consuming one extra unit of a good.